Cashed out 401k from previous employer upon leaving job. Will I still owe considering the 10% withheld in Texas?

[DoninGA]

A withdrawal from a 401(k) is entered on your tax return as ordinary income.  Federal taxes withheld are entered on your tax return as a tax payment (just like from a W-2).  If you are under the age for an exception to the 10% early withdrawal penalty then the penalty will be assessed on your federal tax return as a tax liability.  Whether or not you will owe taxes depends on your total tax payments for the year and your total tax liability.

You will receive Form 1099-R in January of the year after the withdrawal from the plan administrator of the 401(k).  You enter the 1099-R on your tax return as received.

[VolvoGirl]

The 10% Early Withdrawal Penalty age for leaving a job is 55 instead of 59 1/2 for other reasons and IRAs.

[macuser_22]

The 10% withholding does not sound right since 401(k) distributions (that are not direct rollovers) are subject to 20% mandatory withholding for federal tax.    You can have more withheld, but not less.     Are you sure that only 10% was withheld?

(If you are in the 22% tax bracket and also under age 55 then you should have had about 30% withheld to avoid an under payment of taxes.)

[jademendoza1]

It was a 20% with an additional 10%

[macuser_22]

OK, good.  Then unless you are in a higher tax bracket 30% will probably cover the tax.

[jademendoza1]

Awesome, thank you so much. I appreciate it

[Opus 17]

Any withholding is only an estimate, or a mandatory minimum.  Your actual taxes owed are calculated on your tax return after combining all your income, deductions and credits.  You get credit for this withholding, and if you are over-withheld, you get a refund.  If you are under-withheld, you owe more.  

Depending on your income, your federal rate is likely to be 12% or 22%, plus a 10% penalty if you are under age 55, so the 10% withholding is probably not going to be enough.